New Laws Regarding Loans
Loans are considered to be the best source to meet our financial needs. Recently, Reserve Bank of India has made various amendments in Home/Personal/Vehicle Loan Rules. Let’s check out the New Laws Regarding Loans.
Surly, the government is searching for new ways to make things better for Indian citizens. With an attempt to make loan facility accessible by everyone, RBI has introduced new low cost interest rate on Home/Personal/Vehicle Loan. New rules also aim to curb loan repayment abuse. Go through the underneath section of this web page to know the complete information related to New Laws on Loans in India.
New Laws Regarding Loans
- Reserve bank of India has made certain amendments in its credit policy by decreasing the home loan rates for new borrowers.
- The banks have changed the qualification criteria for car loan, only those customers who have income of Rs. 6 lakh per annum are eligible.
- Banks has changed the terms and conditions for education loan. For overseas education the limit is Rs. 30 lakhs which must be returned within 5-7 years time period and for getting education in India student can take up to Rs. 10 lakhs and must return within 5-7 years. The payment process will start after 1 year of course completion. Female students will get a rebate of 0.5% on the interest rate. Apart from that, there will be procession cost of Rs. 5000 for abroad education; while there will be no processing charge for studies in India.
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Laws On Loans In India
1. Fees and Charges: The banks will charge fees for Loans that is disclosed to the applicant upon approval of the loan.
2. Interest, Charges and Penalties: The banks will charge interest on loans within the prescribed limit allowed by the reserve bank of India. However, some amount of penalty will be charged by banks to the Borrower for late payment at the rate specified by the banks.
3. Credit Limit: It is the will of banks to set the maximum credit limit to the Borrower. This limit will be disclosed by the bank upon approval of the loan. The borrower needs to submit every single document asked by the bank to avail the benefits of loan.
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4. Amortization/Payment: Loan amortization shall be based on approved payment schedules as conveyed by the bank to the applicant upon approval of the loan.
5. Loan Disclosure: Loan disclosure statement issued by the bank to the borrower shall act like evidence depicting that the borrower agrees to the terms and conditions of the loan and accepts to pay the rate of interest stated therein. Bank shall notify the borrower about Interest Rate on the principal amount through brochures or pamphlets or text message.
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6. Payment Default: If payment is not made on time by the borrower, the bank has the authority to appoint irrevocably a person who with have full power and authority to inquire about and deduct the unpaid loan balance, regular amortizations due or any other obligations.
Note: So these are the New Laws Regarding Loans, for more interesting facts, stay in touch with us through our web portal.
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